Maryland Cannabis Licensing Opportunities
Cannabis business and licensing opportunities are poised for growth in Maryland after becoming the latest state to legalize recreational cannabis. Explore the legalization timeline and learn how to apply for a cannabis license in the potential $1 billion market in Maryland.
Maryland House Bill HB0556/SB0516, also known as the "Maryland Cannabis Reform Act," proposes to legalize the possession, use, and sale of cannabis for adults aged 21 and over in the state of Maryland. The bill also includes provisions for regulating and taxing the production, distribution, and sale of cannabis products.
The bill has passed both Maryland’s House and Senate and is only awaiting Governor Moore’s signature to become law. When passed, the bill would also establish a regulatory framework for licensed cannabis businesses, including growers, processors, and retailers. It would also allow individuals to possess up to two and a half ounces of cannabis and cultivate up to four plants for personal use. Moreover, the bill includes provisions for expunging certain cannabis-related criminal records, which could help address some of the racial disparities in cannabis enforcement and provide relief for individuals with past convictions.
EXPLORE: Interactive Cannabis Map of the United States
This bill would make Maryland the 23rd state to legalize cannabis for recreational use. Legalizing cannabis has brought significant economic benefits to these states, including increased tax revenue and job creation, while also reducing the social and economic costs of enforcing prohibition laws.
Maryland Cannabis Opportunities
Maryland’s cannabis market is poised for significant growth. Senate Bill 516 and House Bill 556 give a look into the legal framework and regulations for the new recreational cannabis program. Beginning July 1, 2023, current medical cannabis businesses will be able to sell recreational cannabis with a “converted license”. More than 75 Grower, 100 Processor, 50 On-site Consumption, and 300 Dispensing adult-use licenses may be issued by May 1, 2024.
Maryland Adult-Use Cannabis Timeline
November 2022
·Ballot referendum passes, legalizing non-medical cannabis for adults 21 and over
February 3, 2023
·HB 556 and SB516 are introduced in the House and Senate
·These cross-filed bills seek to establish: a regulatory and licensing system for adult-use cannabis; establish the Cannabis Regulation and Enforcement Division as an independent unit in the Commission; and require the Division, by July 1, 2023, to convert medical cannabis licenses to licenses to operate a medical and adult-use cannabis business; etc
March 10, 2023
·HB 556 passes in the house with amendments and is referred to the Senate
April 10, 2023
·2023 Regular Legislative Session adjourns
·Final law expected by this date
On or Before July 1, 2023
·The Division is required to adopt emergency regulations that will be supplemental to the medical cannabis regulations on or before July 1, 2023. The regulations adopted by the Division, to the extent practicable, shall regulate medical and adult-use cannabis in the same manner
July 1, 2023
·ADULT USE SALES BEGIN
·Adults 21 or older may possess and consume up to 1.5 ounces of cannabis flower, 12 grams of concentrated cannabis, or a total amount of cannabis product that does not exceed 750 mg THC
·medical cannabis licensees are expected to be able to convert their licenses to licenses to operate medical and adult-use cannabis businesses
Anticipated: August or September of 2023
·The first round of licensing begins with the release of the application
Anticipated: October or November of 2023
·Applications are accepted and reviewed by the Division and compliant applications are entered into a lottery
On or Before January 1, 2024
·The Division shall begin issuing new licenses
On or After May 1, 2024
·The second round of licensing begins
How to Open a Cannabis Dispensary Business in Maryland
The Cannabis Regulation and Enforcement Division will issue standard licenses, micro licenses, incubator licenses, and on-site consumption licenses. Standard licenses and micro licenses are broken down into three categories each: grower, processor, and dispensary. A person may only hold a maximum of one grower license, one processor license, and two dispensary or on-site consumption licenses at one time. Holders of either incubator or on-site consumption licenses may not own or control other types of licenses. The first round of licensing is limited to social equity applicants. Applicants will be expected to provide detailed business, operational, and diversity plans.
Maryland Cannabis Market
It is difficult to accurately predict the size of the cannabis market in Maryland once it becomes recreational, as it depends on several factors such as the regulatory framework, taxes, and licensing procedures. However, some estimates have been made based on the experiences of other states that have legalized adult-use cannabis.
According to a 2019 report by the Maryland Department of Legislative services, legalizing adult-use cannabis in Maryland could generate approximately $57 million in annual tax revenue by the fiscal year 2024, with an estimated market size of up to $1.7 billion by 2024.
A separate report by the Marijuana Policy Group, a cannabis industry consulting firm, estimated that the total size of the legal cannabis market in Maryland, including medical and recreational sales, could reach $1.2 billion by 2024. This estimate is based on several assumptions, including the adoption of favorable regulations and licensing procedures, the absence of federal interference, and the successful implementation of a well-regulated cannabis industry.
Maryland Cannabis Consultants
Since neighboring state Virginia’s legal cannabis market stalled and DC is currently operating in a legal gray area, Maryland offers a unique opportunity for cannabis businesses in the region. Due to the complex nature of cannabis license applications, partnering with a Maryland cannabis consultant will make the difference in submitting a winning application. Global Go cannabis consultants have helped clients win over 250 cannabis licenses in the United States and abroad. Contact a Global Go cannabis consultant today to begin the process of obtaining a cannabis business license in Maryland.